Bigger than the Trade War

BecauseTrump walks the footsteps of Herbert Hoover, or so the world markets now worry. Rates are again falling. There’s a sense that history is on the precipice… right on the brink. And so we are.

Toss-in the problems of Hong Kong and the fall BREXIT of the UK and there’s every reason to point at the “trade war” as being the Biggest and Worst problem afoot in the world right now. Why, even the Drudge headline about 40-year rates collapsing under 2% support the growing concern.

Unfortunately, it goes deeper than all these. After we run through some headlines and the morning’s ChartPack, a discussion on the larger context of global war is due.

Yes, there may be something worse than the trade war out ahead of us.

The choices are ignorance, planning, which to us isn’t a choice, at all.

18 Comments

BJ. on August 29, 2019 at 09:20

What has made America great since WW2 is the king dollar. When the King dies this country will die too!

Ray on August 28, 2019 at 23:15

JFK wasn’t yet cold when Johnson “upped” the number of American “advisors” in Vietnam from 5000 to 50000. I don’t care for Mr. Kissinger, but I blame the Vietnam debacle on Robert McNamara, not Henry Kissinger.

Unless one lumps-in all the lives lost from the military actions of WW-II (and most historians do), Hitler isn’t even in the same league as Mao, Stalin, or Lenin. Ol’ Adolf only offed 12.5mln. No one will ever know, but between Lenin and Stalin, roughly 125million Russians (and Soviet Satellite citizens) failed to live to their anticipated life expectancy. Mao may have capped 100mln Chinese, again no one knows nor will they ever. And yes, had I been around I’d have been one of those folks who sided with McArthur and thought we should have dealt ourselves into the Chinese Civil War on Chaing’s side.

Mr. Trump is not using “tariffs” as a means of generating revenue or balancing trade. He is using it as a weapon, to break the Chinese’ unfair trade and intellectual property practices. Everyone in politico-economics knows Trump is trying to reacquire critical manufacturing infrastructure, but he’s a good-enough negotiator that he’s not going to make a proclamation to that effect. In hardball negotiations, you NEVER tell the other guy what you’re really after.

America no longer has “values.” Khrushchev is succeeding from the grave, although his final glory may go to Xi.

“American Exceptionalism” is a real thing, but its source is not us. Americans are no more “exceptional” than peoples of any other nation. It is our founding documents which made us exceptional, because they removed the limitations every other nation placed on its subjects. After the Revolution, we became “Citizens,” no longer “subjects” of any military or hereditary ruler. We took a 5000 year leap in sociopolitical evolution. Ever since, elements within our society which couldn’t handle freedom or responsibility have been trying to make us “unleap.” I fear they are finally winning…

Bill on August 29, 2019 at 07:32

The President’s struggle with China is an honorable one as China is nothing more than a mafia controlled nuclear power bent on World domination – Hitler 2.0 in spades. See the Kyle Bass interviews on YouTube for more information on that. This one is the latest – https://www.youtube.com/watch?v=4cwXifDaCjE. Talk about a Clear and Present Danger! As American corporations begin to drop their rose colored glasses of greed they’re beginning to see this and it will take a recession to extricate ourselves from their grasp hopefully without a war which, right now, I’d give a 50/50 chance.

I deeply fear a recession as it does greatly add to the chances of President Trump not being re-elected but we aren’t playing for plastic poker chips here, are we? If the Democrats get the White House and the Senate THEN, for sure, America is sunk because there aren’t two brain cells to rub together in the entire lot of them. If Pelosi can’t control them NOW what will she and Schumer do then? Idiocracy will be permanent ensconced in D.C.

Robert on August 29, 2019 at 07:59

You’re right about America not having shared values any more. The leftist and compliant media are suceeding in making anybody who believes in lawful immigration, supports strong borders and thinks people should migrate here to be an American first, out to be racist, fascist Nazi’s. Its now a perceived crime to be a nationalist vs a globalist, and if you’re white youre a supremacist end of discussion, and there’s even white leftist politicians demonizing their own race. Ive never seen such lunacy in my life.

How did we get to this level of beliefs and how did we get a msm that supports that kind of thinking? Look at the names of many of the people writing these articles. I don’t think many of them see themselves as Americans first, based on the anti American bias theyre supporting. They’re rooting for a globalist no borders world, while claiming to be victims of the very bias theyre projecting at their adversaries.

As far as regaining the industry our politicians of the last 30 plus years gave away to China, China will never give it back. We will have to rebuild it again and hopefully refill all the empty factory bldgs I see in the urban decaying city I live in and across the nation. But how, when what made America strong was the steel that we created and fashioned into products that we know make out of brittle plastic.

Why on earth did we give all of our strengths to China and why did those who enabled it not understand enough about human nature to realize those strengths of American ingenuity, that they placed in China, would eventually be used against us as we gave China all our blueprints for success. Greed ruled.

I wish I really believed Trump will be successful in re-patriating our factories, but all the talent that created those industries are mostly dead and blue collar work is seen as beneath many, esp the younger generations who fancy themselves reality star celebrities in the making. Does anybody want to be a plumber, electrician, carpenter, tool and die maker, punch press operator, assembly line operator anymore, and in numbers that could matter? China has all those skills and mindsets now. Ever seen how filled trendy coffee shops are during the day? Does anybody work anymore?

Ray I agree with you.. except to break the trade and intellectual property practices.. We have to start at home.. As long as NAFTA or any other trade agreement is open so that an industry can have their products made for reduced prices of slave labor they will openly offer the intellectual property to those industries to produce. You don’t think China got the detailed plans for the guidance chips.. it was given to them.. they push education we try to stifle it with school loans and limited educational opportunities according to status they expect it or go work in some slave labor industry. similar to how the military does it. they give you a test then you can pick a job from the list of jobs that will accommodate your educational potentials.

The president has to figure out a way to even the checkbook with the support of Congress and the Deep State.. tough job and I personally think he will loose. In my honest opinion they have way to much power in those puppet strings

Mark on August 29, 2019 at 10:57

Great post “looking out of the box”. The American way of education needs to be re-worked. But, to achieve that will cost Americans money…but..instead of a tax, we should have a forced tax free 529 college plan…but only if parents opt in and declare that their kid will go to college. If kid’s work part time jobs starting at age 16 and continue to do so through college, they have to opt in to contribute if their parents do. The problem with Americans is that most are lousy savers. We would rather have that new 85” 4K flat screen and save for our kids college at a later date. With consumer retail and tech companies strategically coming out with the Next new thing every two years, and we as part of a consumerism society, can’t resist the temptation. By the time our kids our 18, we have spent more and saved less and are forced into student loans. It could work…We bought into forced saving with social security…we can’t opt out of that though. Aren’t our kids future important as well?

Mark on August 28, 2019 at 20:05

You did nail it today George! Great column! Now on a different note… What does anyone think of trumps series of tweets about Fox News. Here is one…

@realDonaldTrump ….I don’t want to Win for myself, I only want to Win for the people. The New @FoxNews is letting millions of GREAT people down! We have to start looking for a new News Outlet. Fox isn’t working for us anymore!“

Working for US? They are not allowed to interview Democrats? CNN always has on Republicans. Especially Chris Cuomo.

Bob in Canada on August 28, 2019 at 15:06

Wow, I had to read your column twice today to absorb it all but it is an excellent if very sobering analysis. I think you nailed it.

I don’t know if it is a good analogy but I have been involved with team sports all my life and see a parallel. I have coached and watched teams that had inferior talent but played with a common cause who fought for each other and won the trophy. I have watched teams with superior talent where every man (person) was out for themself and the team slid into the rank of also rans.

The western world is seriously divided and without a common goal like the Chinese.

I sold the few remaining stocks I held today. Time to buckle the belt.

The thing that makes Americans unique in this world is they love challenges and are very good at overcoming them. As for the current societal and political situation in the United States, I believe we are simply not angry enough to fix it yet. How fast did the U.S.A. mobilize after Pearl Harbor?

d on August 28, 2019 at 09:36

@ Joe M

at that time we had a ‘common enemy’ JAPAN/AXIS…….TODAY the enemy is DEM/REPUB….and is among us….and by the way…’baby killers that sell human parts’ can never be talked to logically…..and those that vote for the politicians that condone that behavior ….are included……..”The thing that makes Americans unique in this world is they love challenges and are very good at overcoming them”…..We have failed in this BIG one….and iT alone divides this country……..and I will not even mention the 2nd A…..challenge imo

eastcoast deplorable on August 28, 2019 at 11:06

@d

New campaign slogan for 2020..Make American Baby’s Safe Again (MABSA)!

Out of work Steve F on August 28, 2019 at 11:11

’baby killers that sell human parts’

There’s contradiction everywhere.

Rich people are the baby killers.

Recently a Detroit billionaire, Dan, had a stroke. He did not stay in the local hospitals. He went to the Shirley Ryan AbilityLab in Chicago and sipped Stem Shakes.

Rich folks in my area build houses on private, inland lakes. Some inland lakes are shallow and as a result – spinal cord accidents happen. Some of their kids will damage their spines by diving into the shallow end. They go to Mexico and sip on Stem Shakes.

Nobody turns down the life-extension drugs.

NM Mike on August 28, 2019 at 22:11

Why on earth should we have to be angry to fix an obvious problem? Problems are understood through analysis and solved through hard work and sometimes painful sacrifice. Anger need never be involved at all. I’m never angry if my car breaks – I just fix it if possible and handle the situation as best I can.

The Pearl Harbor incident was foreseeable and the catastrophic level of loss was due largely to our concentration of resources into one harbor. We cut off fuel and resources to Japan, so we definitely should have expected some backlash. The blockade could have been considered an act of war too. IMHO, the situation seems to have been handled badly, unless of course, the USA actually wanted to declare war.

I believe that war is among the worst possible responses to most situations. Sadly, others disagree. I love my country but don’t love our emotional posturing to real situations that require measured response.

Thanks for your thoughtful insight. It does seem that the world, again, is poised on the edge of a precipice.

Thanks to NM Mike for his excellent and well worded posts. I might add that Japan had developed a unique torpedo that was effective in the shallower waters around Pearl Harbor. I wonder if the peace negotiators from Japan who were in Washington, DC near the time of the attack on Pearl Harbor were aware of this.

I recently finished reading a most remarkable book regarding the CIA that had been run for a long time by Allen Dulles entitled, “The Devil’s Chessboard” by David Talbot. It provided more insight and evidence regarding Dulles’ rule and his “associates” than the other books I read about this.

I have had jury duty this week. All I can report is that it has been an interesting experience.